United Nigeria Airlines Lament High Cost of Insuring Aircraft

Chairman of United Nigeria Airlines, Obiora Okonkwo, has revealed that how he paid a huge sum of $2 million to insure just six Boeing 737-800 aircraft. In comparison, he noted that the same amount would cover a fleet of 25 aircraft in Europe.

Lamenting the high insurance rates facing Nigerian carriers, Okonkwo identified these lopsided costs as a primary “bottleneck” that continues to increase operational expenses across the continent.

Speaking during a high-stakes panel at the IATA Focus Africa Conference in Addis Ababa, Okonkwo emphasised that these hidden costs are a major hurdle to profitability, forcing airlines to pay for “empty air” when incidents beyond their control keep planes on the tarmac.

He also hinted that the current recurring bird strikes is costing the airline huge sums as it has to pay lessors obligations despite the fact that two of his aircraft have been grounded as a result of bird strike.

“From January to April, we have had seven bird strikes. As we speak now, we have two aircraft on ground,” Okonkwo said.

He called on Original Equipment Manufacturers (OEMs) help us Nigerian airlines with the equipment to fight bird strikes.

“I know you may have done that in other regions, we need that in Nigeria in honesty. We want you to get involved because that will help us. I tell you that  

40 to 50 percent of our down time is caused by bird strike. So, you can help us in that area. It’s a special appeal,” Okonkwo further said.